High-Ratio & Insured Mortgages.
Eligible Canadian borrowers can purchase a home with as little as 5% down using a mortgage insured by CMHC, Sagen, or Canada Guaranty — up to the updated $1,500,000 cap. Here's how the rules, premiums, and financing structures work.
Updated insured mortgage cap raised to $1,500,000 (effective December 15, 2024).
30-year amortizations available for first-time buyers of new construction (insured).
Premium is typically financed directly into the mortgage principal.
Ontario charges 8% PST on the insurance premium, payable in cash at closing.
Tiered Rules
Minimum Down Payment by Purchase Price.
Up to $500,000
5%
Of the full purchase price
$500,000 to $1,500,000
5% + 10%
5% on first $500k, 10% on remainder
Above $1,500,000
20%
Flat — ineligible for default insurance
Insurance Premiums
Mortgage Default Insurance Premium Tiers.
| Down Payment Bracket | Premium Rate |
|---|---|
| 5% to 9.99% | 4.00% |
| 10% to 14.99% | 3.10% |
| 15% to 19.99% | 2.80% |
| 20% or more | 0.00% |
The premium is added to your mortgage principal and amortized over the term. Ontario charges 8% PST on the premium, payable in cash at closing.
Approved Insurers
Canada's Three Mortgage Default Insurers.
CMHC
Canada Mortgage and Housing Corporation
Federal Crown corporation; the largest Canadian mortgage insurer.
Sagen
Sagen (formerly Genworth Canada)
Private mortgage insurer offering competitive premium schedules.
Canada Guaranty
Canada Guaranty Mortgage Insurance Company
Private insurer with full Canadian coverage.
Ready to Model Your Insured Purchase?
Use our interactive calculators to estimate your minimum down payment, premium, and stress-tested affordability — then start the Financing Finder for lender-specific structuring.